TN 9 (02-98)

A. POLICY

1. General

Retirement payments made by a partnership to a retired partner are excluded from NESE if certain conditions are met.

2. Conditions for Exclusion

To be excluded, payments must be pursuant to a written plan which provides for payment on account of retirement:

1. To partners generally or to a class or classes of partners;

2. On a periodic basis; and

3. Which will continue at least until the partner's death.

B. REFERENCE

See section 404.1088(b) of Regulations No. 4 for other conditions that may apply.